Keeping Tabs on Wall Street, Stimulus Efforts and the Bailout

Since August 2008, when the economic crisis started making headlines and companies began asking lawmakers for a lifeline in the form of billions of dollars, we at the Center for Responsive Politics have been taking a look at how the finance, insurance and real estate sector as a whole, and its individual companies, have been spending political cash to get taxpayer cash. The following list, which we will update regularly, chronologically archives the major blog items, press releases and Capital Eye articles we’ve produced as we follow the money behind the Wall Street shakeout and the government’s attempts to jump-start the economy.

As long as everyone’s talking today about AIG’s payouts to its executives and foreign banks, let’s remember the payouts AIG has made over the years to politicians. In the last 20 years American International Group (AIG) has contributed more than $9 million to federal candidates and parties through PAC and individual contributions…. (Continue)

The eight CEOs testifying Wednesday before the House Financial Services Committee about how their companies are using billions of dollars in bailout funds may find that the hot seat is merely lukewarm. Nearly every member of the committee received contributions associated with these financial institutions during the 2008 election cycle, for a total of $1.8 million…. (Continue)

The companies that have been awarded taxpayers’ money from Congress’s bailout bill spent $77 million on lobbying and $37 million on federal campaign contributions, CRP has found. The return on investment: 258,449 percent. … (Continue)

While companies across the board were losing record amounts of money and laying off employees last year, at least one industry seemed to weather the recession: lobbying. Special interests paid Washington lobbyists $3.2 billion in 2008, more than any other year on record and a 13.7 percent increase from 2007, CRP has found. Corporations in the finance, insurance and real estate sector and automotive industry actually slowed or decreased their lobbying spending overall last year, relying instead on trade associations to represent them…. (Continue)

Although Sen. Chris Dodd (D-Conn.) is chair of one of the more powerful congressional committees, he probably isn’t the envy of his peers these days with an economic crisis growing larger by the day. Dodd has put in two years as chair of the Senate Committee on Banking, Housing and Urban Affairs and is now charged with shaping legislation to jump-start the economy and help floundering companies, including those that have contributed to his campaigns…. (Continue)

Rep. Barney Frank, D-Mass., continues his role as chair of the House Financial Services Committee this year in the midst of an economic recession. But the money he’s received from the finance sector hasn’t won his unconditional support of doling out bailout cash to floundering companies. … (Continue)

Although the senators who voted in favor of the auto bailout didn’t receive more money on average from automakers and dealers than those who opposed it, money from the United Auto Workers correlated significantly with votes to help out Detroit. Senators who supported the UAW-backed legislation received nearly 14 times more, on average, from the union in the last 20 years than those who voted against it…. (Continue)

House Democrats voting to bail out Detroit’s Big Three have collected 44 percent more money, on average, from auto manufacturers, dealers and unions than Democratic opponents of the bill. Republican supporters have collected 62 percent more than opponents in their party…. (Continue)

Although local and state governments usually send lobbyists to Capitol Hill on their behalf, mayors and governors from across the nation have been meeting with President-elect Barack Obama and Congress in the last week with their economic wish lists. Despite the money crunch, this year city, state and municipal governments are on track to spend more on federal lobbying than they have in the last two years. … (Continue)

Weeks before they turned to the federal government for rescue, companies such as AIG, Ford, Citigroup and Freddie Mac were among the biggest sponsors of the summertime political conventions that nominated Barack Obama and John McCain for president, according to a new analysis by the nonpartisan Center for Responsive Politics, in collaboration with the Campaign Finance Institute…. (Continue)

The surge of activity in the nation’s capital to revive the country’s economy apparently hasn’t caused a torrent of lobbying funds by the insurance companies, investment banks, mortgage companies and savings and loans central to the government’s actions. While unions, companies and organizations across all industries increased their lobbying expenditures 2 percent in the 3rd Quarter of this year compared to the first three months of 2008, the finance, insurance and real estate sector apparently scaled back, decreasing its spending by 9 percent…. (Continue)

Why, when Wall Street took the fast lane to grab its share of $700 billion in federal bailout funds, does the auto industry seem stuck in neutral? The carmakers’ campaign contributions to Congress suggest one reason: Most lawmakers, especially those on the finance committees that heard this week from pleading GM, Ford and Chrysler executives, don’t owe much payback to Detroit…. (Continue)

The five hedge fund managers who testified Thursday before the House Oversight and Government Reform Committee are more likely to find friends among Democrats, who have received 65 percent of the total $14.2 million the unregulated industry has given this election cycle to federal candidates, committees and parties. … (Continue)

Detroit’s Big Three automakers are trying to re-start their engines and they’re looking to the federal government for some fuel. Ford, General Motors and DaimlerChrysler have been joined by the United Auto Workers (UAW) union in asking the government to carve out $25 billion of the $700 billion financial rescue program to pay for their day-to-day operations…. (Continue)

Members of the House of Representatives who voted Friday afternoon in favor of the Emergency Economic Stabilization Act of 2008 had received 41 percent more money from the financial sector over their congressional careers than those who opposed the legislation, the nonpartisan Center for Responsive Politics has found…. (Continue)

The finance, insurance and real estate sector has contributed twice as much money to senators who supported bailing out the struggling sector this week than those who opposed emergency legislation, the nonpartisan Center for Responsive Politics has calculated following the 74-25 Senate vote Wednesday night that sent the bill to the House of Representatives for passage this afternoon…. (Continue)

Members of the House of Representatives who supported bailing out the financial sector with $700 billion in taxpayer money have received 51 percent more in campaign contributions from the finance, insurance and real estate sector in their congressional careers than those who opposed the emergency legislation, the nonpartisan Center for Responsive Politics calculated following the 228-205 vote on Monday that defeated the House bill…. (Continue)

The last time Congress seriously debated how to regulate the financial industry, the result was legislation that allowed the nation’s largest banks to get even larger and take risks that had been prohibited since the Great Depression. A look back at that debate, which was over the 1999 Financial Services Modernization Act, reveals that campaign contributions may have influenced the votes of politicians who, a decade later, are now grappling with the implosion of the giant banks they helped to foster…. (Continue)

How did Wall Street’s largest firms also become some of the largest donors to John McCain and Barack Obama’s presidential campaigns? Take a look at the candidates’ rosters of bundlers on OpenSecrets.org, and it becomes clear…. (Continue)

The Federal Reserve announced today that it’s coming to the rescue of American International Group (AIG) to the tune of $85 billion. The nation’s largest insurer, which asked the Fed for emergency funding in the midst of financial hardships, hasn’t had trouble over the years giving money to lawmakers, however. AIG is on CRP’s Heavy Hitters list that profiles the 100 all-time contributors to federal candidates and committees…. (Continue)

Wall Street’s grim news has plenty of people worried about their pocketbooks. Lawmakers are among them, not only concerned with how to boost the economy but with their own personal finances tied to companies that are struggling. The richest members of Congress seem to be the most invested in the companies at the center of the Wall Street shake-up…. (Continue)

Uncle Sam bailed out Freddie Mac and the company’s twin sister, Fannie Mae, this week, and the next in line in the Wall Street family to get a helping hand might just be Lehman Brothers. Executives at the struggling investment bank are looking to sell the company with assistance from the government–and fast–as its stock plunges. Although the government isn’t expected to completely bail out Lehman Brothers, the fourth-largest U.S. investment bank, the company has built a strong financial relationship with politicians over the years and coincidentally ranks fourth in the largest contributors in the race for the White House…. (Continue)

When the federal government announced two months ago that it would be seizing mortgage buyers Fannie Mae and Freddie Mac, CRP looked at how much money members of Congress had collected since 1989 from the companies. On Sunday the government proceeded with the takeover and we’ve returned to our data to bring you the updates, this time providing a list of all 354 lawmakers who have gotten money from Fannie Mae and Freddie Mac (in July we posted the top 25)…. (Continue)

Now that the federal government has bailed out Fannie Mae and Freddie Mac from their impending financial doom, Congress has an even greater interest in seeing the giant mortgage buyers succeed-some lawmakers perhaps more than others. According to the Center for Responsive Politics, 28 lawmakers had between $598,100 and $1.7 million of their own money invested in the two companies last year…. (Continue)

As economists and analysts try to sort out how giant mortgage buyers Fannie Mae and Freddie Mac ended up needing to be bailed out by the federal government this past weekend, here at CRP we can see part of the picture of why that solution won out over others. Both Fannie Mae and Freddie Mac are prolific political players, pouring millions of dollars into campaign contributions and lobbying, efforts that have resulted in keeping the two companies afloat as more Americans have defaulted on their mortgages…. (Continue)

For every star-studded concert and poker tournament when the sun goes down over the Rockies, there are dozens of mundane corporate events during the day that resemble what goes on in Washington nearly every other day of the year. Such was the scene Tuesday at a daytime event sponsored by the Financial Services Roundtable, an influential alliance of the nation’s biggest banks, insurers, mortgage lenders, investment advisors, credit card companies…. (Continue)

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